Chancellor extends furlough, self-employed support and business rates relief

Chancellor Rishi Sunak today announced extensions of the furlough scheme, the business rates holiday and support for the self-employed in his Spring Budget.

Setting out what he described as “a three-part plan to protect the jobs and livelihoods of the British people, ” Mr Sunak (pictured) said furloughed employees would continue to receive 80 per cent of their salary for hours not worked.

Employers will then be asked to make a 10 per cent contribution from July and 20 per cent in August and September.

The Chancellor said support for the self-employed will also be extended until the end of September - with 600,000 more people eligible.

Additionally, the 100 per cent business rates holiday is to remain in place until the end of June, before being discounted by two thirds for the rest of the year.

However, addressing speculation over tax rises, Mr Sunak confirmed corporation tax will rise to 25 per cent from 2023. However, there will be protection for those businesses with profits of less than £50,000.

It was also announced that for the next two years, businesses investing in new equipment can offset all of the cost (with an additional 30 per cent off) in a bid to encourage more firms to invest in technology

Other measures announced in the Budget include:

• £5bn grant scheme to help English high-street shops and hospitality businesses
• An additional £400m for the arts sector - with £300m added to the existing Culture Recovery Fund, £90m for England 's museums and cultural bodies and £77m for similar initiatives in the devolved nations
• £1.65bn towards the UK 's Covid vaccination rollout to help the country to achieve its aim of offering first dose to every adult by the end of July
• A 'fast-track ' visa scheme to help start-up and rapidly growing tech firms source talent from overseas
• An extra £126m into the traineeship scheme, in which the government pay employers who give young people work placements
• The 'Help to Grow ' Scheme in which thousands of small businesses will be offered free MBA-style management training
• A £150m pot to help communities take over a local pub or sports club at threat of closure
• Cash grants under the self-employment income support scheme (SEISS) to those who became self-employed during 2019-20

Meanwhile, the Office for Budget Responsibility has forecast the UK economy will grow by 4 per cent this year and will return to pre-pandemic levels by the middle of next year.

Stay tuned for full reaction and analysis from Greater Birmingham Chambers of Commerce this afternoon.

Click here to book on to our Spring Budget 2021 Review event with Azets.

Image credit: Cubankite / Shutterstock.com